One example is Norway. You can hack your PS3, Wii, DS or whatever with no consequence with the law. Its not long ago that jailbreaking apples i products was illegal in the US whilst legal in Norway all the time.
You buy something, it's yours. If they ever start bricking consoles because of flashcart they will just unleash a shitstorm on themselves.

Bottom line is this. Do not worry, they cannot do anything. The Law stops them.

"Some system updates for Nintendo 3DS contain functions to fight piracy, in which some functions will be disabled if the system has located an unauthorized device."
To me this only says "if there's a flashcart present it will not be able to start the software in the cart slot and some functions (StreetPass/SpotPass/step counter) will stop working (until you turn your 3DS off and back on)" which is what is happening now when you try to boot a blocked flashcart.

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However it's not legal and they're not going to do it.
It is legal, because in order to use the internet to update in the first place, you have to agree to the terms of service:
QUOTE...
Chapter II: Unauthorized Software or Devices

You may not use your Nintendo 3DS System with any unauthorized software, unauthorized device, or make any technical modifications to the Nintendo 3DS system. Any such use or modification voids any warranty, is a breach of this Agreement, and may be illegal or cause performance issues and/or damage to your Nintndo 3DS System and related Services. Nintndo (as well as any Nintendo licensees, distributors, or retailers) are not responsible for any damage or loss caysed by the use of such devices, software, or modifications.
...Nintendo reserves the right to immediately terminate, block, or suspend, in whole or in part, your use of the Nintendo 3DS Service, or any feature of the Nintendo 3DS System for, in Nintendo's sole discretion, any violation of this Nintendo 3DS Code of Conduct.

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I think that is pretty clear that by updating the system or connecting to the internet, you have to agree that Nintendo can brick the 3DS for any unauthorized devices.

You can agree to whatever they want you to, as long as destroying your property is illegal they can't do anything. Terms of Service don't override the law. And (at least in Europe) breaking people's belongings is illegal. It doesn't matter to what you agreed. If I make you agree to TOS saying if I don't like your face I can I can spill acid on it I still can't do it without getting sued and punished accordingly.
Nintendo could block you from their online services, but not take away any functionality from the devices we bought.

You can agree to whatever they want you to, as long as destroying your property is illegal they can't do anything. Terms of Service don't override the law. And (at least in Europe) breaking people's belongings is illegal. It doesn't matter to what you agreed. If I make you agree to TOS saying if I don't like your face I can I can spill acid on it I still can't do it without getting sued and punished accordingly.
Nintendo could block you from their online services, but not take away any functionality from the devices we bought.

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You don't own a 3DS system. (well, the hardware) You are merely buying a license to use the software on the hardware you purchased. That includes not hacking or modifying it in any way. So, they have the right to remove the firmware if you try to hack it.
That's why GeoHot lost in court.

You don't own a 3DS system. (well, the hardware) You are merely buying a license to use the software on the hardware you purchased. That includes not hacking or modifying it in any way. So, they have the right to remove the firmware if you try to hack it.
That's why GeoHot lost in court.

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You really should read up on this. Sony had no way to go against Geohot until he released the encryption keys. If they could have done anything against him just for hacking the PS3 they would have done so as soon as he showed some results. Also, Geohot didn't lose in court, they settled it outside of court.
In addition: Why do you think Microsoft only bans people from online play? At first they locked hard disks, too, but had to unlock them again because breaking your hardware is against the law.

You don't buy a license. You buy a device that is yours to do whatever you want with.

Some people say about a stealth log that register if you're using flashcards and then the console bricks, but believe me there is no need of a stealth "something" it is not that hard to know if you're using flashcards or not, and if they're going to fight piracy why they didn't fight it in the dsi or dsi xl, and they could lose more money bricking consoles than letting it runs without any block, or worse they can enter in lawsuit because of that.

Yeah, but those rumors are from when it was reported that shops would check the logs, and if the shop employees will find out how to do it, then so will everybody, so as mentioned that rumor doesn't make sense.

They're clearly stating that they will not *brick* the device, they will lock certain functions. I'd assume that the "functions" they mention could be the eStore and WFC for the 3DS games, seeing that those two are services and Nintendo isn't legaly binded to give you those services.

Yeah, but those rumors are from when it was reported that shops would check the logs, and if the shop employees will find out how to do it, then so will everybody, so as mentioned that rumor doesn't make sense.

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Maybe Nintendo will send each store a special device that can check it. It would be very hard for regular people to get access to one of those then.